Outstanding Irish insurance claims to a Denmark-based company which has been declared bankrupt are now expected to be covered by a Danish fund.
Qudos went into liquidation this month, and the company had around 50,000 customers in Ireland.
The company primarily offered motor insurance here, as well as household insurance distributed through a Managing General Agent and insurance brokers.
Payouts on claims were put on hold in the wake of the liquidation.
The Finance Minister Paschal Donohoe had indicated the Irish Insurance Compensation Fund may have had to cover outstanding claims here due to a recent change in Danish legislation.
However, the company has now been declared bankrupt in Denmark.
On their website, the company confirmed that it filed for bankruptcy with a commercial court in Copenhagen today.
An insolvency administrator has been appointed, and existing policies will be valid until they are automatically terminated three months after the publication of an official bankruptcy decree.
It also offers information about the Danish Guarantee Fund, which can provide compensation for claims not covered as a result of a company's liquidation.
Confirming that it has been informed of the bankruptcy, the Central Bank here says it is "strongly recommending that the small number of remaining Irish policyholders arrange alternative cover with immediate effect".
It adds: "Policyholders must now report any claims to the Danish Guarantee Fund for non-life insurance undertakings provided that the claims are covered by the Guarantee Fund. Otherwise, policyholders must report any claims to the bankruptcy estate of Qudos Insurance A/S."
Insurance Ireland, which represents insurance companies here, welcomed the bankruptcy announcement.
The group said in a statement: "Due to a legislative change in Denmark, had this not happened until after 1 January, the liability for the outstanding claims in Ireland may have had to be covered by the Irish Insurance Compensation Fund (ICF). Thankfully, the cost of these claims will now be covered by the Danish Guarantee Fund.
"The priority now is ensuring that Irish policyholders with outstanding claims are given clarity on how and when their claims will be settled by the Danish Guarantee Fund."
